Revenue Allocation: Obiano seeks 50% for state, as RMAFC holds sensitisation in Anambra

Governor Willie Obiano of Anambra State on Wednesday proposed a revenue-sharing formula of 50, 30, and 20 per cents for state, local, and federal governments, respectively.

The governor, made the request while declaring open the sensitisation exercise for a new revenue allocation formula for the country held in Awka, the state capital.

Obiano, who was represented by his Deputy, Dr Nkem Okeke, said states should get the lion’s share of allocation because they shouldered the highest degree of responsibilities among the three tiers of government.

According to him, “Issues of security, health care, education and infrastructure in the states require enormous resources and funding.

“The existing revenue formula of 26 per cent collectible by states is grossly inadequate”, Obiano emphasised.

In his address, the Federal Commissioner, in the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mr. Chima Okafor, said the team was given a specific constitutional mandate to review from time to time the revenue allocation formula and principles in operation.

This he said was to ensure conformity with changing realities, “provided that the revenue formula which had been accepted by an Act of the National Assembly shall remain in force for a period of not less than five years from the date of commencement of the Act”.

“It is in compliance with that constitutional provision and in view of the changing socio-economic and political dynamics of the nation that prompted the commission to commence full-scale engagement of representatives of various stakeholders and the people nationwide in the process of fashioning a new revenue sharing formula for the country.

“Inputs from the people at the interactive exercise will provide pathways for creating a workable template to assist the commission in its task of evolving and bequeathing to the nation a fair, just and equitable new revenue sharing formula”, Okafor added.

Okafor said the commission was desirous of providing within the shortest possible time, a generally acceptable revenue formula that would meet the expectations of the three tiers of government to the benefit of the citizens.

Stakeholders and groups, including traditional rulers, civil society organisations, the legislature, and the judiciary who spoke at the event endorsed an upward review of revenue due to the states and the LGAs.

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